The dollar index regained momentum near a three-week high above 98 mark as investors awaited the latest producer price index report after hot inflation data pared back expectations of Fed interest rate cuts this year. Data released by the US bureau of labor statistics on Tuesday showed that the US Consumer Price Index (CPI) rose by 2.7% on year in June, up from 2.4% in May. This figure came in line with the market forecast. The core CPI, excluding fluctuating food and energy costs, increased by 2.9% in the same month versus 2.8% prior. On a monthly basis, the headline CPI and core CPI rose by 0.3% and 0.2%, respectively. Moreover, DXY is gaining on account of safe haven demand amid rising uncertainty from tariffs. US President Donald Trump notified 25 countries of new tariff rates set to take effect on August 1st, including major trading partners Canada, Mexico, and the European Union (EU). Currently, dollar index that measures the greenback against a basket of currencies is quoting at 98.29, marginally lower on the day after a spike to 3-week high yesterday.

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